Africa50 in $15m data centre deal
Africa50, the pan-African infrastructure investor and asset manager, announced a $15 million investment in Raya Data Center.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
Africa50, the pan-African infrastructure investor and asset manager, announced a $15 million investment in Raya Data Center (RDC). The investment, which is subject to regulatory approvals, will strengthen RDC’s existing operations and fund the development of a greenfield tier III data centre in Egypt, driving the country’s digital economy and startup ecosystem.
The data centre industry in Egypt requires substantial investment, driven by high demand amid the country's growing digital economy and internet usage.
RDC, which is wholly-owned by Egypt Exchange-listed conglomerate Raya Holding, currently operates two tier III data centers in Cairo.
Ahmed Khalil, CEO of Raya Holding, said: "We are thrilled to announce this strategic partnership with Africa50, which highlights the confidence investors have in Raya Holding’s vision and success in building a diverse portfolio of investments in high-potential sectors. This partnership is a fundamental step towards achieving our ambitious expansion and growth goals while delivering sustainable value for our shareholders."
He added: "Egypt's data centre market is brimming with potential, with an expected annual growth rate of 12.8% until 2030. Through Raya Data Center, we are committed to meeting the region's increasing demand for digital services and playing a pivotal role in the digital transformation of Egypt and beyond.”
Raza Hasnani, managing director and head of infrastructure investments at Africa50 said, “We are delighted to enter one of Africa’s largest data centre markets alongside a proven operator such as Raya Data Center. This investment is a key building block in our fast-growing pan-African data centre portfolio. RDC’s current and future data centres will not only support the Egyptian government’s digitisation push but also provide the necessary digital infrastructure on which the country’s thriving SME and startup ecosystem can build.”
Raya Data Center was advised on this transaction by CI Capital as its financial advisor and Backer McKenzie as its legal advisor. Africa50 was advised by Herbert Smith Freehills and Matouk, Bassiouny & Hennawy as legal advisors.
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log – a database of reported investment deals, exits, and fundraising closes. Subscribe here